10 Aug 2012
Acquisition of a 22% minority interest in PIXmania
Dixons Retail PLC, ("Dixons" or the "Group"), one of Europe's leading multi-channel specialist electrical retailing and services companies, today announces it has reached an agreement to acquire the 22% interest in PIXmania S.A.S. ("PIXmania") currently indirectly held by the founders of the business, Steve and Jean-Emile Rosenblum for €10 million (approximately £8 million) in cash. Dixons already holds a 77% interest in PIXmania. Completion of the acquisition is expected to take place later today.
PIXmania's e-Merchant platform provides the basis of Dixons' UK & Ireland multi-channel operations as well as for a number of other third party clients. The rest of its operations continue to face significant challenges. This acquisition will enable the Group to take full day to day control of the business and is in line with the Group's strategy take the necessary actions to improve the performance of this strategically important business.
Commenting on the transaction, Sebastian James, CEO of Dixons, said "I am pleased that we have been able to acquire substantially the remainder of the PIXmania business. PIXmania is the heart of our very successful UK multi-channel business and this will ensure the stability and flexibility to continue to improve the experience for the customers of that business. PIXmania's own trading business continues to face strong market headwinds and this move will also allow us to manage the company in line with the Group's wider strategy and take the decisive actions necessary to improve its performance."
IR and Corporate Affairs Director
020 7396 7422
Information on Dixons Retail plc is available at www.dixonsretail.com
- Dixons acquired their existing 77% stake in PIXmania in April 2006 for a total cash consideration of €266 million (approximately £185 million at the prevailing exchange rate). The remaining 1% in PIXmania is controlled by Club Fotovista, a French company held by employees and former employees of PIXmania.
- PIXmania reported turnover of £665 million for the 12 months ended 28 April 2012 and an underlying operating loss of £20 million.
- In the event of any onward sale of PIXmania within the 24 months following completion, a further cash amount may become payable to the selling shareholders under the sale and purchase agreement, dependent upon the consideration obtained upon such a sale.
- Dixons has also agreed to waive outstanding amounts owed by the selling shareholders of approximately €5 million (approximately £4 million), which will have no cash impact.